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Rediff.com  » Business » Pakistan keen to transfer Iranian gas to India

Pakistan keen to transfer Iranian gas to India

Source: PTI
November 12, 2007 15:48 IST
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Pakistan has said it is eager to transfer Iranain gas to India and China after it finalised the text of a multi-billion IPI gas pipeline project with Tehran.

Mokhtar Ahmad, advisor to Pakistani Prime Minister Shaukat Aziz, made the remarks after the three-day Iran-Pakistan talks on the $7.4 billion pipeline project, which resulted in finalisation of the text over the weekend in the absence of India, which is the third partner.

"As we expected, the text of the peace pipeline has been made ready for the signing by the two states' heads," he was quoted as saying by Iranian news agency.

"We faced no obstacle during negotiations and all articles of the peace pipeline contract were smoothly restudied," Ahmad added.

Under current conditions, the Pakistani side had openly and officially announced it would welcome the transfer of Iran's gas to India, China, and any other point via its territory, officials said.

Meanwhile, Iranian oil minister's special envoy for pipeline talks Hojjatollah Ghanimifard said India was also willing to rejoin the pipeline project, expressing hope the contract would be signed by the three sides.

On the profitability of the project, Ghanimifard said: "The issue should not be compared with the presence or absence of one of the two states, Pakistan and India, as all arrangements have been already made for transferring a certain volume of gas to the border."

Pakistan and Iran have agreed to revise the pricing formula of the multi-billion gas pipeline project in 2015, paving the way to seal what is being described as a landmark deal.

Gas import from Iran was vital for domestic industries and economic development of Pakistan that was facing the growing demand for the fuel, Ahmad said. Pakistan's secretary, ministry of petroleum and natural resources Farrukh Qayyum said Islamabad gave first priority to import gas from Iran.

He said Pakistani government would study gas imports from Qatar and Turkmenistan after it finalised the peace pipeline project with Iran.

Some part of the Asian market's need could be met through peace pipeline and some parts in the form of liquefied natural gas (LNG) via sea, Ghanimifard added.

"We should not focus on India's demand as other Asian countries can be involved in the peace pipeline project and receive our gas or transfer Iran's gas through swapping the energy carrier to a destination that links to its own pipeline," he added.

"It is economically important for Iran to export gas to Pakistan, India, and other Asian states at a time it has decided to export the commodity to European countries," he added.

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